This paper estimates a stochastic production using household survey data to analyze the relationship between farmers’ health impediments and agricultural production efficiency in Ethiopia. The results show that healthy farmers produce more per unit of inputs, earn more income and supply more labor than farmers affected by sickness. The model results show that production inefficiency increases significantly with the number of days lost to sickness. This finding suggests that investing in the health sector in rural areas will not only improve farmers’ agricultural performance but also increase their income. Policymakers should therefore devise strategies that will maximize the contribution of health investments to agricultural productivity and the overall rural economy.